The CNMC advises against raising the landline fee proposed by Telefónica.

29 January, 2020

According to a report prepared at the request of the now-extinct State Secretariat for Digital Advancement, the Spanish National Commission on Financial Markets and Competition (CNMC) explains that the increase intended by Telefónica for the landline fee ‘would result in a reduction of the affordability of the service’.

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Previous reports on the landline fee.

In the years 2017 and 2018, the CNMC prepared different reports where it was indicated that the increases suggested by Telefónica negatively affected the affordability of the access service, and particularly groups with more limited incomes.

At that time, Telefónica wanted to increase the landline fee of 14.38 euros per month to an unspecified amount due to the confidential nature of CNMC’s report. The operator also requested an increase in the price for calls by an equivalent proportion.

The average price of the landline fee in Europe.

In order to defend their position, Telefónica explained to the Spanish Government that those 14.38 euros of the landline fee are below the European average. However, the Spanish National Commission on Financial Markets and Competition, estimates that the average price is 12.67 euros.

The price for calls is also increased.

Telefónica also explains that the increase in the landline fee and the price for the different kinds of calls from a landline will not have an impact on the affordability of the landline service.

Macroeconomic indicators.

The operator bases their statement on the reading of the main macroeconomic indicators of the Spanish economy during the years after 2008 and the economy recovering that followed the crisis of that year, mentioning, by way of example, the GDP growth.

They also claim that the increase in the minimum inter-professional salary and the minimum pensions carried out between 2018 and 2019 would compensate for any negative effect that the increase in the price of the landline fee and calls from fixed lines may have.

Movistar raises its tariffs in February.

As of next 14 February, Movistar will raise its fibre and ADSL tariffs which are not related to other services by 3 euros.

And as of 15 February, the following increases for the different services will also be effective:

5G is in full deployment in Europe and Spain. However, the United States is pressing Europe to look for alternatives to the companies chosen to implement this network, as it is the case of Huawei and its 5G.

Solutions for Telecom Expense Management, which does not depend on operators, since 1985.

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